The theory is that the more devices the iPhone 5 can replace, the higher the utility of the device to consumers is, and the higher price they will pay. The iPhone 5 currently works as a phone, and for most customers as an mp3 player. It also serves to delay some of the time spent on personal computers for certain segments of the market.
Apple Inc. (NASDAQ:AAPL) has seen its share plummet in recent days after a poorly received earnings report. The company deserves another look according to the report from Barclays PLC (LON:BARC) (NYSE:BCS), which deals with more than just the digital camera part of iPhone 5 appeal.
A second benefit of the all-in-one model is that when consumers seek to update one function of their device, i.e. their camera, they have to replace the entire product, at full cost. The market model is a great one for Apple Inc. (NASDAQ:AAPL), but the iPhone 5 has yet to replace cameras.
For a certain segment of the market, the iPhone 5 has managed to replace point-and-shoot digital cameras, but it hasn’t made enough headway into the market to be considered a stalwart force in the segment. A Barclays report studies usage patterns on the social networking site Flickr, which is owned by Yahoo! Inc. (NASDAQ:YHOO).
The study finds that the iPhone 5 is being increasingly used as a digital camera, and is taking market share from traditional point and shoots. The iPhone 4s is the most valuable camera on Flickr currently, with more than 5200 daily users as of January 28th, the iPhone 4 is in second place with a shade over 4000 average daily users.
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